Essity has found a buyer for its operations in Russia and will therefore soon exit the Russian market, as announced. The Swedish tissue products manufacturer reports that it signed an agreement with a buyer and that the transaction was already approved by Russian authorities.
The sale is expected to be finalised before the end of the second quarter of 2023. The name of the buyer was not disclosed.
Essity began work to exit the Russian market in April 2022. Last year, the company’s assets in the country were impaired by approximately SEK1.7bn. On the whole, Essity does not expect the exit to have a material financial impact on its earnings. In 2022, the company‘s sales in Russia amounted to around 2 per cent of the group’s total sales.
Essity operates three production plants in Russia and employes around 1,300 people.